Greetings, and welcome to the Theragenics Fourth Quarter and Year End 2012 Earnings Conference Call. It is now my pleasure to introduce Ms. Christine Jacobs, Chairman and CEO of Theragenics. Thank you, Ms. Jacobs. You may now begin.

Christine Jacobs - Chairman and Chief Executive Officer

Thank you, Latania. Good morning, and welcome to Theragenics Fourth Quarter and Year End 2012 Conference Call. Thank you for calling in this morning. In a few minutes, I’ll provide you with context for 2012, outlook for 2013, but first I am going to turn you over to Frank Tarallo, our Chief Financial Officer who will provide his comments on fourth quarter and year end.

Frank Tarallo - Chief Financial Officer

Thank you, Chris, and good morning, everybody. Before I begin my review, please be aware that some comments made during this conference call may contain forward-looking statements involving risks and uncertainties regarding our operations and future results. Please see our press release issued today and our filings with the Securities and Exchange Commission, including without limitation, our Form 10-K and Forms 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

Now, on to our results, our consolidated revenue in fourth quarter of 2012 was down 4% from last year. For the full year, consolidated revenue was flat. Let’s look at revenue by segment, as this is the best way to understand our results. Our surgical products revenue in Q4 was flat compared with 2011 and for the full year, surgical products revenue was up 1%. Macroeconomic uncertainties and unpredictable customer behavior continued to affect our surgical segment.

Turning to our brachytherapy business, Q4 brachy revenue was down 12% versus last year and for the full year brachy revenue was down 2%. The customer base we acquired from core oncology in February added revenue of $793,000 in Q4 and $3.6 million for the year. During Q4, we saw a continued decline in the number of procedures to treat prostate cancer. It isn’t just affecting us or even just brachy therapy, but rather declines are being reported across all types of treatments.

We continue to hear from our customers and others that the recommendation against routine PSA screening made by the U.S. Preventive Services Task Force has affected the number of patients being diagnosed with prostate cancer. We are also hearing from physicians and others in the industry that more men are being counseled to opt for active surveillance, but the disease is simply monitored rather than treated.

Turning to EPS, in Q4 we incurred a loss of $0.01 per share. For the year, our net income was $0.07 per share. The decline in our brachytherapy segment was the primary reason for the decrease in EPS we saw in the 2012 periods.

Turning now to segment profitability, our surgical segment incurred a loss from operations of $334,000 in Q4 of 2012 and had operating income of $696,000 for the full year. These results are slight improvements over the comparable periods in 2011. Gross margin in the surgical segment was 32% in Q4 compared to 30% in last year’s Q4. For the full year, gross margin was 34% compared to 35% last year.

Let me now turn to profitability in our brachy business. Operating income was $89,000 in Q4 of 2012 and $3.1 million for the year. The decline in brachy profitability from 2011 was caused by the drop in procedures I mentioned a few minutes ago. The year-over-year sales of our TheraSeed palladium product decreased $1.6 million in Q4 and $4.3 million for the full year. We have talked before about the fixed cost nature of our palladium and how a decline in palladium revenue has a material impact on profitability.

The revenue stream we acquired from core offset some of this decline. And the transition of these customers to our new AgX100 iodine seed in the second half of the year helped profitability, but as we have mentioned previously, the iodine products have less of an incremental impact on profit than our palladium products have. We began the Oncura loading services work in November this year. We continue to expect annualized revenue of over $1 million from that agreement. We did incur some startup expenses in Q4 and as we ramped up for that work.

Looking at cash flow, we generated $13.2 million in cash from operations in 2012, more than doubling operating cash flow from the prior year. We have reduced our accounts receivable our inventory levels freeing up that cash.

Looking forward inventory levels in 2013 may increase as a result of our outsourcing which Chris will discuss more in a few minutes. Capital expenditures were $1.9 million in 2012. For 2013 we expect our maintenance CapEx or what we would expect to spend in the absence of any special programs to run in about the same rate as we saw in 2012. We also expect about $1 million to $1.5 million in capital expenditures in 2013 related to our outsourcing activities. If you are modeling us our total CapEx spend for 2013 is expected to be in the range of $3 million to $3.5 million.

The significant cash flow item for us during 2012 has been the earnout based acquisition of the core customer base. We used $5.3 million on this acquisition in 2012. Remember that the total purchase price is based on the actual revenue generated from the acquired customers. The earnout period goes through August of 2013. At the present time, we do not expect to have to make any further earnout payments as this customer base has been affected by the same decline in prostate cancer procedures as everybody else.

Of course we could end up making the additional earnout payments based on the actual revenue generated from these acquired customers. Another significant cash flow item this year was our modified Dutch auction share repurchase in July. We repurchased approximately 4.8 million shares, representing 14% of the outstanding shares at that time. We used $10.4 million in cash including transaction costs for that repurchase. And it was funded entirely from our cash on hand. We have no current intensions of repurchasing additional shares.

To wrap up, we finished the quarter with $34.9 million in cash, cash equivalents and marketable securities. We have $22 million outstanding under our credit facility for a net balance of $12.9 million.

That wraps up my remarks and I would now like to turn the call back over to Chris.

Christine Jacobs - Chairman and Chief Executive Officer

Thank you, Frank and good morning. As I have stated in our press release issued this morning, any momentum from our first half of 2012 was raised in the second half of the year. Medical device sector growth was anemic. Demand was soft cross all over our businesses. Macroeconomic uncertainty was widespread and remains. Government policies and regulations, such as the pending healthcare reform, recommendations that healthy men forego PSA screening, the medical device tax, and overall tax increases further damaged an already fragile and wounded med-tech and device business environment, but don’t get me wrong, these are not excuses, it’s simply the facts. Yet even in this difficult environment, Theragenics had a number of strategic accomplishments during 2012 that have set the stage for long-term growth. Additionally, we don’t plan to operate status quo in this environment.

But first let’s spend the moment on the 2012 accomplishments. In February of ‘12 we acquired the prostate brachy customer base of core oncology. This transaction brought us $3.6 million of new revenue during the year and the presence in the iodine segment of the market that we previously lacked. In Q4, we entered into a loading service agreement with Oncura that’s a unit of GE Health. This is a new type of arrangements for – arrangement for us. It allows us to continue to elaborates our brachy capabilities and find new avenues of growth with over $1 million of expected annual revenue.

We developed and introduce three new products in our surgical segment this year. While the revenue generated from the new products was not material in ’12, they do represent an upside for 2013 and its also open doors for us that were previously closed. Product development remains the key to our strategy for growth. We repurchased $10 million of our common shares in 2012 through a modified Dutch auction that we had in July. The strength of our balance sheet allows to fund this modified Dutch auction from cash on hand. This transaction provided additional liquidity for our shareholders.

Also in 2012, we announced our intention to outsource certain manufacturing offshore to reduce costs. I am going to talk more about that in a minute. We renewed our credit facility, increasing our available credit and reducing our interest rate. This facility gives us continued flexibility. In 2012, we completed our ERP implementation across all of the businesses and we expect to see additional efficiencies from the tools and the visibility that this system gives us in our manufacturing processes.

And I think you would agree this is an impressive list of accomplishments. And while the accomplishments were messed by the difficulties that I mentioned at the outset of my remarks, they are nonetheless important for our ability to achieve sustainable long-term success. These accomplishments positioned us for sector recovery when it happens.

I want to turn now to surgical products business in the environment in which we operated during 2012, this business held its own with 1% revenue growth over 2011. At this point in the business improvements in profitability are a matter of scale. And health cost reduction programs ensure that we remain competitive. One of the most exciting developments in this sector for 2012, were the three new products that came out of our R&D efforts during the year.

We launched valved tearaway introducer, Microsoft – Microslide introducer for babies and a Centeze drainage catheter. Our OEM customers and dealers are especially pleased and motivated by these R&D activities from us. This is our most aggressive launch of new products ever. Revenue from the new products was modest in ’12, but it does provide an upside for 2013 and beyond. Just importantly these new products open doors to customers and opportunities that we previously did not have. Going forward you can expect us to continue to focus on new development as a key strategy to drive organic growth. We are not going to develop products requiring lengthy and expensive clinical trials, but instead we expect to work on 510(k) products for which there is already existing demand.

Another key initiative in the surgical segment is the outsourcing or manufacturing of certain components and legacy products. I discussed this last quarter we’re moving actively now towards this initiative for reducing costs and remaining competitive. We’ve identified Costa Rica as our first choice for outsourcing. We already have one small component coming out of Costa Rica. And while outsourcing is new for Theragenics it’s not new for our customers. And preliminarily has been overwhelmingly embraced by some.

As context, we are not setting up a Theragenics facility or an operation in Costa Rica. We’re truly outsourcing. However, even though we are not going to buying or leasing real estate, we do expect to incur capital expenditures for the program. We already incurred some small CapEx related to outsourcing in Q4. And Frank mentioned in his remarks that we expect 2013 CapEx related to outsourcing to be in the range of $1 million to $1.5 million. These amounts of course can change depending on opportunities and how quickly some of our programs ramp up.

One note, we will operate in a measured and a controlled fashion and like our large ERP implementation will not risk sloppy execution. One final item related to outsourcing, we are not planning to abandon our U.S. manufacturing heritage. But we have to meet the challenge of the new environment in a device sector that we believe this irrevocably altered.

So, let me switch gears now and talk about the brachy business. Over the past 20 plus years this industry has had its share of twists and turns and intrigue, yet we haven’t seen anything like what happened in 2012. In May, the U.S. Preventive Services Task Force issued a recommendation that healthy men forego PSA screening. This announcement picked up wide spread media coverage. And the effect of the recommendation was not only severe, but it cut across all prostate cancer treatment types including ours. Additionally we consistently hear from our physician customers that this recommendation has materially reduced the number man doing PSA screening. I don’t think it’s too much of stretch to assume that when fewer men are being tested, fewer prostate cancers will be detected and fewer prostate cancers will be treated.

Also affecting procedure are reports of more man opting for active surveillance, the all term would have been watched for waiting. All this combined with the continued reimbursement disparity between IMRT and brachytherapy made for a difficult second half of 2012 for our brachy business. And we don’t know when the decline in procedures will level off. What we do know is that we believe brachytherapy is here to stay as a cost effective way to treat prostate cancer. And we also believe that brachy continues to experience outstanding cure rates and reduced incidence of long-term side effects. And we expect the dynamic of this marketplace and the remaining competitors to present opportunities for which we will be ready. We took advantage of two such opportunities in 2012 the acquisition of Core Oncology customer base which we have discussed previously and in Q4 the loading service agreement with Oncura along with the closer relationship that it brings with GE Healthcare. We believe we will have additional opportunities in this space which will allow us further leverage of our unique capabilities.

Now, let’s turn to 2013 and again to provide context. From our view point, on a macro level 2013 will suffer the hangover effects of the difficulties we saw in 2012 and then some. The medical device tax is now a certainty and in our opinion is disproportionately burdensome activity on small device companies like ours. Right now we expect the 2.3 revenue base tax to be applicable to 50% to 75% of our product sales in the coming year. This would have resulted in a device tax that is additional operating expense of about $900,000 to $1.4 million on our 2012 product sales. To put into perspective for you our total R&D expenses for 2012 totaled $1.1 million. But let me be clear we are not stopping our R&D, but the tax is material. Another area that we expect to affect 2013 is the Gridlock in Washington.

Gridlock continues, healthcare reform and steaming ahead which in turn will increase costs and taxes continued to rise. This influences this spending and the investing decisions of our customers and it also changes patient behavior. Patients don’t seek medical services when they are unemployed or their future uncertainties loom. We expect customer behavior will continue to be erratic and unpredictable. Pricing pressure will remain and become more intense. So, with all of this going on why get out of bed in the morning. Well, to be candid, we are not retard and frankly pretty exited about the future of our company. Yes, sure the ample challenges ahead but remember our 2012 strategic accomplishments that I just spoke about, will there the position us to whether the circumstances and we are not done. We are gaining product development momentum in our surgical sector. In recent meetings with some of our distributors, I found them motivated by many of these recent developments. We have a plan for sure and long-term cost reductions in the surgical sector to keep us competitive and improved profitability.

In the brachy business, we’ve shown that we can take advantage of opportunities and is creative and a beneficial way to enhance our cash strategy in that business and we expect more opportunities will come our way. Our balance sheet remained flexible and it will support tuck-in acquisitions to leverage. Our capabilities that we currently have and we plan for more products in our sales channels.

So, let’s talk a moment about the cash. We generated a significant amount of cash this year. And Frank mentioned few minutes ago that we generated $13.2 million from operation. We have always said that our intent is to manage our cash balances wisely and that cash is king. We don’t do stupid things with our cash and even with the cash use for our Digoxin share repurchase and the acquisition of core customers, we’ve maintained a strong cash position that provides us with flexibility and it helps us prepare for whatever may happen.

Turning back to the industry, while we think the medical device industry has been fundamentally altered over the last couple of years, we believe the markets going to provide opportunities for growth and value overtime. We’ve been manufacturing medical devices for over 25 years and we know our industries, we know our patients, and we know our customers. Our accomplishments in 2012 and the strategy going forward further positioned us to be at the ready when the new normal solidifies and opportunities present.

So, with that, thank you for your time this morning. Latania will open it up for questions.

Question-and-Answer Session

Operator

We’ll be now be conducting a question-and-answer session. (Operator Instructions) Our first question comes from Joe Munda with Sidoti & Company. Please proceed with your question.

Joe Munda – Sidoti & Company

Good morning.

Frank Tarallo

Hi, Joe.

Joe Munda – Sidoti & Company

Hi, thank you for taking my question. Well, as it seems like a lot of moving pieces this part of the year so, I have a couple of questions here. Frank, as far as new products, I know you said total revenue on the three new products is modest, but can you give us the ballpark figure on how much with the $400,000, $500,000?

Frank Tarallo

Yeah, I think the valved tearaway when we announced that last year we gave an indication of what the revenue might be at full ramp-up and it was sort of in the $200,000 to $300,000 year range.

Joe Munda – Sidoti & Company

Okay.

Frank Tarallo

And that’s probably the largest of the three that Chris referred to so, it’s not bad, but modest.

Joe Munda – Sidoti & Company

Okay. And then Frank as far as you guys are I know you guys have made early indications about off shoring and it was a possibility now it seems like you guys are going full speed ahead. What is that going to do – to the gross margin and how could we look at operating spend as well going forward?

Frank Tarallo

Yeah, thanks for that question. We are – to be clear as Chris mentioned, we are still planning and we haven’t – we are not completely in the deep end of the poll at this point, but we are steaming ahead, you’re exactly right. We said before that we’d like to drive towards gross margins that are in the range of about 40%. And this is a step to help us get there. I think we are at 34 this past year. So, that could give you some idea of where we think we can get to ultimately as part of an overall cost reduction program, of which outsourcing will be a big part.

Joe Munda – Sidoti & Company

Okay. And as far as OpEx spend, I mean it’s not going to come down because of the possibility of offshoring or is that kind of maintained, I mean what can you give us as far as of an outlook for that?

Frank Tarallo

I think, so when you say OpEx, I think about SG&A kind of expenditures is that what you are talking about.

Joe Munda – Sidoti & Company

Yeah.

Frank Tarallo

Yeah. That’s mainly driven by our sales and marketing related activity in our R&D. And so we don’t see that changing a lot. We wanted to support the sales obviously. We want new products. Our R&D you might see pickup a little bit in the coming year, because we’d like to accelerate that process, but from a sales and marketing standpoint, we expect to see about what we have now.

Joe Munda – Sidoti & Company

Okay. And then Christine, on the regulatory front, can you give us a little bit more color on the PSA announcements and as far as screening is concerned and what has been the response from the IMRT companies? I can’t imagine they are still happy as either. So, I mean have you spoke to any of those guys, especially the guys with da Vinci. Any color would be great?

Christine Jacobs

I don’t mean to be flipped, but if you want color mine will be red and it’s not because it’s Valentine’s Day. Look plainly said, the entire industry associated with the treatment of prostate cancer has been blindsided by this government report. Had it not happened, we would have had a good year and we’d be looking at some very different results here today. The IMRT folks, yes, they are affected like we are. Now, look I will back track for a second, they want some reimbursement battles. You remember on the prior call, they were slated to have a 70% cut in their reimbursement.

Joe Munda – Sidoti & Company

Yeah.

Christine Jacobs

That didn’t happen. They ended up with a very effective lobbying group and they did have a cut, but it was not the magnitude of 70%.

Joe Munda - Sidoti & Company

Okay. What was the cut then?

Christine Jacobs

It’s I don’t know I guess….

Frank Tarallo

The 70% was one portion of that procedure, Joe, so which was about half the reimbursement, so the proposed cut was called at 35% and they wound up in the range of 10% to 12% to 15% something like that.

Christine Jacobs

Yeah. I think I am recalling about the same. It was double-digits, but it was not over 20%.

Joe Munda – Sidoti & Company

Okay. But wouldn’t that incremental cut then make you guys more competitive in the brachy space because of the reimbursement coming – the reimbursement gap kind of narrowing a little bit?

Christine Jacobs

I would like to believe so, but don’t lose site, the bigger issue is this Preventative Task Force. And to give you my red color background, the U.S. Preventative Task Force comes out in May and says we are over-treating prostrate cancer, men do not have to have PSA screenings and that showed up in one avenue after another. I think it was covered by all of the major – all of the major networks. And add to that, what we have been reporting to you before, the office visits to physicians is down. It’s been down throughout the recession. GE talks about it almost every quarter in their conference call that doctor office visits are down. So, then we have already pressure in that light and then the government comes out and says by the way if you are otherwise healthy don’t get a PSA.

Joe Munda - Sidoti & Company

Well, alright.

Christine Jacobs

And so that’s where it started.

Joe Munda – Sidoti & Company

Alright Christine on that note on your past comment and this will be my final question, how much of CMS reimbursement of the total amount of money that CMS reimburses is related to prostate cancer do you think?

Christine Jacobs

I couldn’t give you that number, I don’t have it at my fingertips and I apologize, but I do have some context for you that Frank may.

Frank Tarallo

Yeah, Joe, two things, one you asked if we talk to others and we do talk to others all the time and then others also talk publicly intuitive the makers of the Robot Da Vinci you asked about that.

Joe Munda – Sidoti & Company

Yeah, yeah.

Frank Tarallo

They announced a couple of weeks ago that their year-over-year procedures with the robot were down 17%. Bard announced last week that their brachytherapy was down 18%, IsoRay announced this morning they were down 21%. So, we got that public information plus as we referred to in our comments others in the industry that we talk to are experiencing the same kind of things that we do. To maybe understand a little bit or help you understand some of the context or the numbers when Chris says it wasn’t for the Government Task Force recommendation we may have had a much different outlook. First quarter of this past year our base TheraSeed business, our base brachy business was down about 6% and Chris and I have been talking previous to that, that it look like things, the rate of decline was starting to slow, it was too early to tell, but that’s the way things were going.

Joe Munda – Sidoti & Company

Fine. Wasn’t that number viewed by the Oncura acquisition?

Frank Tarallo

No, no, no, I think you are talking about Core but what I’m given you is we were down 6% net of the Core effect down.

Joe Munda – Sidoti & Company

Okay.

Frank Tarallo

Because we were actually up first quarter when you added Core in. So we were down 6% on the base let’s call it the base business non-core stuff, it’s the 6% decline held throughout the year we would have been down $1.3 million instead of $4.3 million. And we are talking about palladium business so that $3 million delta or differential was almost dollar for dollar effect on profit for us because of the way our – because of the fixed cost in our business. And so while it’s impossible for us to say that all of that was due to the Task Force recommendation that’s the single biggest thing we can identify and that others have identified. So just to give you an idea of what we think that cost us this year.

Joe Munda – Sidoti & Company

Okay. But is none of it I mean the decline isn’t attributable to churn than you are saying.

Frank Tarallo

No, you are exactly right. We are not losing significant customers, we are not losing many customers to speak of period, our market share all things equal our market share has increased.

Joe Munda – Sidoti & Company

Yeah.

Frank Tarallo

Because of the Core deal if you strip Core out our market share is about what it was previously.

I would think of a Dutch auction is a good idea when you are doing it to enhance shareholder value for everyone who stays on board not to give it additional liquidity, but that’s just my comment.

Frank Tarallo

Okay.

Bill Jones

And then my concern is you go back to ‘07 since I have kind of followed the company you had whatever 40 plus million in net cash and now you are down to whatever 12 or 13 and you’ve made $104 million or $105 million worth of acquisitions on some medical device products and what did you pay for Core $8 million or $9 million.

Frank Tarallo

Core is our earn-out base and we paid just over $5 million so far.

Bill Jones

Okay. So $5 million and the Dutch so there is maybe $118 million, $120 million and cash has gone from $40 million to $13 million or whatever and it just makes me think how long do we have to wait to maybe get it back to 3 or 4 if that’s ever going to happen or should we explore or should the board explore hiring an investment banker and that’s just a concern, what I’d like to see since I’ve been on board so long and I haven’t gotten anything out of this investment yet, any comments?

Frank Tarallo

Well I mean sure. The first comment I have is your recommendation for the board believe me we have and continue to explore all options and all opportunities for that company going forward. It’s just like the - prior to the modified Dutch auction when folks wanted us to do buybacks. And that the buyback that was recommended was the standard buyback well there isn’t enough liquidity in our stock I think we had estimated it probably take us about five years to buyback the $4 million or so that we did manage during the Dutch auction. So, we are very sensitive to the points that you are making, we are very sensitive to all of the options going forward, what I could say to you is duly noted. We have had a strategy that we’ve been implementing on, we have decreased when you came in 2007 we were making sure we diversified our revenue stream to not be wholly dependent on the brachy business that was our diversification strategy that was implemented. Those companies experienced growth right through some tough years and we’ve been very vocal that we bought those companies they were inefficient in some instances, we have now tripled the revenue but our regulatory environment with which we – with which we have to maneuver has doubled, tripled and quadrupled. So we have some external issues and we’ve had some internal. So, what we’ve done is stick to our netting and not attempted to do anything stupid with our cash diversify our revenue stream and believe in the efficient market that we were going to see it in our share price when we did good things and we’ve done good things and didn’t get the desired effect with the share price. So your point is well taken, board is well aware and yeah I’ve been on the phone for a long time. So.

Bill Jones

But I do listen.

Frank Tarallo

Good.

Bill Jones

And I’m on board for the next couple of years at this point, but I do feel sometimes frustrated in that as you said it affects this new regulation and tax affect smaller companies more than larger companies and maybe Theragenics should be part of a larger company.

Frank Tarallo

Well and this tax is disproportionate, our big customers that they are going to be able to shoulder it, they are going to be able to do all sorts of things to sort of financially engineer and take care of the impact, the small company isn’t going to have that choice and you are absolutely right. It does give us pause you know in my comment I said that one thing we don’t want is to just status quo, we are not going to do that. It’s one of the reasons we’re looking at all these different moves that we’re talking about. So, I thank you for your support and we share your disappointment in that share price and the board is well aware of what you speak. So thanks.

Bill Jones

Thank you.

Operator

We have a follow-up question from Mr. Joe Munda with Sidoti & Company. Please proceed with your question.

Joe Munda – Sidoti & Company

Yeah, in regards to the last caller, Christine, I was just wondering I mean why, what is the $22 million credit revolver going to be basically utilized for I mean if you were sitting with almost like you said almost $40 million in cash why go out and get a $22 million revolver?

Christine Jacobs

Well I want the flexibility to capitalize on opportunities, look if I can get more market share in the brachy business, if you take a look at the two transactions that we’ve had this year in and around brachy I’m happy with them. They help stay off what would have been an even tougher year plus we said we were going to stick around and be one of the last man standing in by God we are and there are more opportunities out there and I would like the cash for the flexibility to get it if it makes sense. The second thing is our surgical products and we have renewed interest and have rebuilt our distributor sales force in surgical products this year and these guys are really excited about the three products that we pumped out this year well and not only want more coming from us but I’d like to buy it and I would like to buy some tuck-ins to go ahead and put some more things in the bag of this, in the bag of the distributor sales force. There is one thing I learned this year in traveling and being with this distributor sales force is these brands and our surgical products have brand awareness and that brand awareness is associated with quality and I really like to pump some other products through so that when the Koreans and the Chinese incoming imports of cheaper medical devices continue to fail we remain to go to provider and that is that this brand and what we have back here is worth supporting and I want the money to get out some more products quicker.

Joe Munda – Sidoti & Company

Okay. And as far as – I’m sorry give me one second here. So you – so you’re opened to acquiring other brachy like you did with Core and Oncura you are open to using that credit line to acquire other brachy businesses?

Christine Jacobs

Yes.

Joe Munda – Sidoti & Company

Okay. And then Frank had alluded to IsoRay and Bard with their brachy business coming down, why not form a Lobbying group with them or if they wanted to exist I’m not sure currently and really press congress on these issues.

Christine Jacobs

We have one. We have a Lobbying group that’s the whole industry belongs to.

Joe Munda – Sidoti & Company

Yeah.

Christine Jacobs

We’re very active and we support it. What…

Joe Munda – Sidoti & Company

I mean you still sit on the small business committee right the SEC?

Christine Jacobs

The Securities and Exchange Commission?

Joe Munda – Sidoti & Company

Yeah.

Christine Jacobs

Yeah.

Joe Munda – Sidoti & Company

Okay.

Christine Jacobs

I’m still Co-chair of that Advisory Group, yes.

Joe Munda – Sidoti & Company

Okay, okay. I mean…

Christine Jacobs

And I mean this is our topic but one of the things we’ve identified is some of the burdens here of our expenses that we incur as a result of Dodd-Frank and some of these disclosures that these that they are imparting on us and as of February 1 meeting I had an opportunity to show this wing for the fences on disclosure release – relief which should reduce our expenses. Now as far as brachytherapy is concern I have to work through the agencies and through our Lobbying group right now because as I said after getting the law passes in 2003 and then three subsequent extension and this current democratic administration I’m not going to spend millions of our dollars to go for parity with IMRT, I don’t think that’s why he used for cash. But on out there bill or Joe I’m in that. We are actually looking at some programs that might helped us with this PSA test.

Frank Tarallo

First time.

Christine Jacobs

I mean it be really nice if we could refute some of this stuff that’s what I like to see happen and have men go back and ask for PSA test.

Joe Munda – Sidoti & Company

I mean you’re talking right now that surveillance is one of their options I mean what is that incur I mean what is that involve they just watch the disease progress.

Christine Jacobs

Yeah.

Joe Munda – Sidoti & Company

And then at the last minute that you have to treat men.

Christine Jacobs

That’s exactly right it’s also called watchful waiting and they typically watch the men who are symptomatic that did get a PSA because of this over treatment issue those guys are being to bullets wait and see if the PSA rises. If your PSA is above 4 say between 4 and 10 they might say to the guy let’s don’t do anything come back in three or six months. Well repeat the PSA, you’re absolutely correct, if the cancer has progressed we’re actually going to look at a larger number of advanced disease in the coming years.

Joe Munda – Sidoti & Company

So they’re actively pressuring oncologist to do this.

Christine Jacobs

Who is actively you meant the government?

Joe Munda – Sidoti & Company

Yeah.

Christine Jacobs

Well I don’t know that they’re actively pressing them but they’ve got plenty of news coverage that says don’t (indiscernible) guys.

Christine Jacobs

Yes.

Joe Munda – Sidoti & Company

Or they won’t reimburse them is that what they’re saying were…

Christine Jacobs

No.

Frank Tarallo

No.

Joe Munda – Sidoti & Company

They haven’t gone up for – okay.

Christine Jacobs

They’ll give – no, no they get reimburse but the pressure is on them on the public awareness and it’s like the guns in the act where the public is concerned.

Joe Munda – Sidoti & Company

Okay, okay. Alright. Thank you.

Christine Jacobs

Thanks.

Frank Tarallo

Thank you.

Operator

There are no further questions at this time. I would like to turn the call back over to Ms. Jacobs for closing comments.

Christine Jacobs - Chairman and Chief Executive Officer

Thank you. And I appreciate you staying with us today and spending some time to through the Q&A to sort of understand and get some additional context on our 2012 results. We appreciate your time and patience this morning. Thank you.

Operator

This concludes today’s teleconference. You may disconnect your lines at this time. And thank you for your participation.

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